News Highlights Thursday 17 July 2008

25-year-old Joo Chiat Complex gets a makeover
To compete with Singapore's new mega malls, the 25-year-old Joo Chiat Complex in Geylang Serai is getting a makeover. The upgrades, which started in March and are expected to be completed next month, were welcomed by most shop owners. HDB and Marine Parade Town Council will foot all costs and hope that the complex, with its 200 shops and offices, will remain attractive to shoppers.


- The Straits Times, H7






Hiap Hoe-SuperBowl top bid for hotel site below forecast
A joint venture between Hiap Hoe Ltd and its sister company SuperBowl Holdings Ltd placed a lower-than-expected top bid for a hotel site in the Balestier area opposite the Sun Yat Sen Nanyang Memorial Hall. HH Properties bid $73.3 million or about $172 psf of potential gross floor area for the 99-year leasehold plot. This is lower than the $350-470 psf ppr that analysts had indicated for the site. Yesterday's tender attracted 3 bids. Some analysts suggested that stringent requirements for the plot in Balestier, including having to maintain a park that occupies about a quarter of the 1.77-hectare site, may have tempered bids. Hiap Hoe Holdings said that if awarded the site, they will probably develop a three-star hotel catering to businessmen and tourists, especially from China and India.


- The Business Times, P4






London QC plans adjunct office here
A London Queen's Counsel is setting up an adjunct office in Singapore focusing on arbitration. Stuart Isaacs is the first QC from London authorised by Singapore's Attorney General to practise as a foreign lawyer here.


- The Business Times, P16






CapitaLand, KepLand raise $3b for Asia property funds
Two Singapore property players have raised a combined US$2.2 billion (S$3 billion) for their private equity funds investing in Asian property. CapitaLand has set up a US$1 billion fund to invest in properties in Shanghai, Beijing, Chengdu and Hangzhou. CapitaLand will hold 50% of the fund, while leading financial institutions and pension funds from Asia, Europe and North America will hold the rest. Keppel Land's property fund management unit, Alpha Investment Partners has raised US$1.2 billion from 15 institutional investors for a fund. Keppel Land's Alpha Asia Macro Trends Fund will target real estate in Singapore, Japan, Taiwan, South Korea, Hong Kong, China, India and Vietnam. It brings the total number of funds under Alpha to five, which will be managing gross assets of about $7 billion. Investors in Alpha's funds include three of the largest Dutch pension plans - Stichting Pensioenfonds ABP, PGGM and MN Services - as well as UBS and Deutsche Bank.


- The Straits Times, H19








Forced sales loom over UK real estate scene
Britain's economic slowdown heralds a wave of forced commercial property sales that could yet tip a downturn in real estate markets into a property crash. Fewer new offices are going up in London than almost 20 years ago, and creditor banks have learned that foreclosure can make a bad property situation worse, but property derivative traders sense trouble ahead as occupier demand begins to wilt.


- The Business Times, P37





M'sian real estate sector may face rocky road ahead

Property players say the real estate sector in Malaysia was quieter in the first half of 2008, with significantly fewer launches. Many building contractors are turning down government jobs that they say they will lose money on because of the soaring cost of materials. The Master Builders Association of Malaysia has warned that more projects could be abandoned. With plenty of supply in the pipeline, investors are wary of a mismatch in future supply and demand. Developers are relying on the higher-end segment, which appears more resilient. The commercial sector in the Klang Valley remains a bright spot, with strong interest among Korean and West Asian investors, according to property consultants. Analysts expect the going to be tough over the next 12 months and are underweight on property counters, saying most developers are already posting lower profits.


- The Business Times, P38






UK risks slipping into recession: economists
Inflation in London is at its highest level in more than 10 years and home sales are at their lowest in three decades. Retail sales are down and consumer confidence is falling. Economists said that Britain risks slipping into recession if consumer spending slips. Home prices have dropped by 9% since August 2007. Brokers sold an average of just 15 properties each in the three months ended June, according to a report by the Royal Institution of Chartered Surveyors.


- The Business Times, P18






Indonesian economy rebounds from fuel price hike
Indonesia's economy has rebounded from the impact of a hike in subsidised fuel prices despite rising interest rates and high inflation, the central bank governor said. Foreign exchange reserves were at a healthy US$59.6 billion and inflation had become normal again. The central bank raised its key interest rate by 25 basis points on July 3 to reign in an inflationary surge.


- The Business Times, P19






Rupee seen falling on current-account gap
India's rupee is likely to weaken 1.8% against the dollar by the end of the year as costlier fuel and food imports cause the current-account deficit to widen, according to Brown Brothers Harriman & Co. The rupee slumped 7.5% in the past three months, the second-worst performance among the 10 most-traded currencies in Asia. It touched a 15-month low of 43.4750 per dollar on July 1, according to Bloomberg.


- The Business Times, P21






Who's who in property (Overseas Edition)
Developers in Singapore and elsewhere are offering private housing at attractive prices to lure potential buyers back into the market. In recent weeks, some Singapore residential projects have received an encouraging response, and developers are trying to woo possible customers. Elsewhere in the region, a similar scenario is being played out. Developers have lined up projects, waiting for the right time to launch. The Malaysian market has often attracted strong interest from Singaporean buyers. And while Malaysia's real estate sector has not been immune to the effects of the global financial crisis, some property consultants say there are bright spots in the market.


- The Business Times, Who’s Who in Property Overseas Edition, P1






On the home front
With so much uncertainty in Malaysia, Kuala Lumpur's residential property market is reeling. The number of residential transactions lodged in Kuala Lumpur and Selangor in Q1 of this year was lower than the corresponding period in 2007. Further declines are anticipated for Q2. But the top-tier condominium market in the Kuala Lumpur City Centre and Mont Kiara have performed well over the last two years with selling prices doubled in that time. Sales have been good with foreigners making up about 30-40% of the buyers. The exemption of real property gains tax and the lifting of the required approval from the Foreign Investment Committee were also factors in attracting foreign investors. The top-tier luxury condominium market is expected to soften as purchasers become more selective and developers become increasingly cautious about oversupply, leading to slower sales.


- The Business Times, Who’s Who in Property Overseas Edition, P3




Signature at Lewis
- Freehold
- No 1 Lewis Road
- 32 units
- Expected TOP: 31 Dec 2011
- Developer: Hiap Hoe
- Marketing agents: OrangeTee, HSR
- The Business Times, P5 - advertisement

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